LONDON The Chinese test & measurement market is growing faster than the rest of the world according to research done by Frost & Sullivan. The growth rate was above 10.0 percent in 2008 while the figure was about 7.1 percent in the rest of the world.
New technologies are overshadowing old ones with the phasing out of stand-alone instruments and the move towards PC-based equipment. Specific applications such as telecom testing, semiconductor testing, data acquisition, and electronics functional application testing require automatic test equipment, making automation of the existing equipment trends that can hardly be ignored.
The Chinese T&M market is highly concentrated with multinational manufacturers dominating the market with long-term efforts, complete product lines and advanced technologies.
According to Frost & Sullivan's China Research Manager for Measurement & Instrumentation Practice David Ren, the Chinese government has announced that it will take $586 billion stimulus package by 2010 to stimulate domestic consumption and growth. “It covered 10 main aspects, and most of them will directly or indirectly stimulate the development of end-user industries such as transportation, healthcare and education, environment in the Chinese T&M market. T&M suppliers will benefit the latest government's stimulus plan in terms of increasing spending and lower cost,” said Ren.
The major challenge faced by the Chinese T&M industry is the processing precision and speeds. “Key market drivers are reflected by end user and regulation. In the following years, government's investment will still be the most important drive for the market growth. China is still the most attractive emerging economy for key end-users in the T&M market. On the other hand, increase in demand from major end-user industries such as communication, automotive, life science, industrial electronics industries will drive the growth of the Chinese T&M market,” said Ren.
Ren believes that many advanced instruments can not be made by the local companies requiring China to import many instruments from other countries, which incur high expenses every year. A limited budgetary combined with high price, restraints the demands of the T&M products. Another key market restraint includes integrated instruments. Increasing preference for integrated instruments over standalone equipment restrains the revenue growth.
According to Ren, five technology trends are expected to influence the Chinese T&M industry over the next few years; increased use of multicore or parallel test systems, growth of software-defined instrumentation, the growing popularity of field-programmable gate arrays (FPGA)-enabled instrumentation, the explosion of wireless standards, and emulation-based ATE for system-on-chip (SoC) and system-in-package (SiP) testing.